Paxys income surges 176% to P339M

Paxys income surges 176% to P339M
By Zinnia B. Dela Peña
The Philippine Star 04/23/2006

Paxys Inc., one of the fastest-growing call center firms in the country, reported a 176 percent growth in its net profit last year as it attracted new clients and entered new markets.

In a financial report filed with securities regulators, Paxys said its net income reached P339.23 million compared with only P122.9 million a year earlier.

Service income grew 115 percent to P1.4 billion from only P600 million, mainly coming from the work programs from new US-based clients, which started on production in various months last year.

The increase in service income is also attributable to additional services and promotions of a local client that requires additional number of seats and to the increase in production of old clients. From only 800 seats beginning 2004, Paxys’ sole subsidiary Advanced Contact Solutions (ACS) ended the year 2005 with 3,000 seats.

Cost of services more than doubled to P783.13 million while earnings per share amounted to P0.51 from P0.62.

Interest expense went up 286 percent to P29 million. This was due to interest on new loans from local banks availed in 2005 and increase in interest rate on the dollar-denominated loan.

The company’s interest income surged 1,072 percent due to interest earned by the parent company from investing the net proceeds from the rights offering into short-term placements.

ACS also contributed 754 percent of the increase in interest income. This was due to ACS’ drive to properly manage its available cash.

To sustain its gains, Paxys is looking at Australia and Europe as new sites for expansion.

Paxys plans to aquire a majority stake in Global Idealogy Corp. (GIC), a leading provider of corporate mobile software applications in the domestic pharmaceutical industry.

It signed an agreement to acquire 4,404,498 common shares of GIC at P2.25 per share and 2.15 million warrants at P0.25 each warrant. The total transaction price is P10.45 million.

Paxys said the acquisition of GIC is intended to support its strategic intent to broaden and deepen its product and service offerings in the business processing outsourcing sector.

Together with its recent investment in ScopeWorks Asia, a data transcription company, the acquisition of GIC is envisioned to complement ACS, Paxys staple call center business.

Paxys’ goal is not only to expand its core voice services but also to diversify into advance data services and eventually, advance into IT outsourcing and other information technology solutions.